Brandenburg Constitutional Court is examining the possible effects of the Karlsruhe budget ruling on the billion-dollar Brandenburg package

Brandenburg Constitutional Court is examining the possible effects of the Karlsruhe budget ruling on the billion-dollar Brandenburg package

According to a report by www.zeit.de,
The Brandenburg Constitutional Court considers possible effects of the Karlsruhe budget ruling on the billion-dollar Brandenburg package to be conceivable. The decision on a lawsuit by the AfD parliamentary group regarding the Brandenburg aid package will not be made until next year. Before the court order, no further decision is planned for this year. The court will take into account the Federal Constitutional Court's decision on the 2021 supplementary budget. This ruling concerns the transfer of Corona billions to the climate and transformation fund and the inadmissibility of setting aside emergency loans for later years.

The possible impact of the Federal Constitutional Court's ruling on the Brandenburg package could be considerable. The court had declared the transfer of Corona billions to the climate and transformation fund in the 2021 supplementary budget to be inadmissible and pointed out that the state was not allowed to set aside emergency loans for later years. This may result in the fund missing out on significant loans amounting to 60 billion euros, which in turn could impact the financing of the Brandenburg package.

The Brandenburg package includes up to two billion euros in new debt to deal with the consequences of the Ukraine war. It is part of the double budget 2023/2024 and flows into various areas such as municipalities, hospitals, schools, universities, sports clubs and the expansion of disaster control.

Finance Minister Katrin Lange (SPD) states that possible effects of the Karlsruhe ruling on the package are being examined. She emphasizes that no Corona emergency loans have been reallocated in Brandenburg and that there must be a factual and temporal connection to the state parliament's emergency resolution. CDU parliamentary group leader Jan Redmann also sees a need for an examination and states that it must be examined whether the emergency situation will last for the years 2023 and 2024 or whether two separate decisions are necessary.

Overall, the Federal Constitutional Court's ruling could have a significant impact on the Brandenburg package and the financing of measures to deal with the Ukraine crisis. It is important to monitor the reactions of decision-makers and the further development of the legal process in order to assess the long-term impact on the financial market and the financial industry.